Property and Building Ltd. (TASE: PTBL), a subsidiary of IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner, narrowed its net loss for the third quarter of 2012, despite large write-offs on the Las Vegas Plaza casino and hotel project, jointly owned with Yitzak Tshuva's Elad Properties. Property and Building narrowed its net loss to NIS 234 million for the third quarter from NIS 425 million for the corresponding quarter of 2011.
Most of the third quarter loss was due to the NIS 227 million write-off for projects in Las Vegas, as well as financing expenses on loans. In the third quarter of 2011, Property and Building made a NIS 390 million write-off on its projects in Las Vegas, including NIS 279 million for the Plaza casino.
Property and Building reported better current results. Revenue rose to NIS 195 million for the third quarter from NIS 136 million for the corresponding quarter, mostly from properties purchased or leased during 2011. The most important properties are the 50% stake in the HSBC headquarters in New York, the Barney's building in Chicago, and the Gav-Yam Park North Herzliya.
Sales of land and apartments rose to NIS 93 million for the third quarter from NIS 44 million for the corresponding quarter.
Property and Building CEO Segi Eitan said, "The company continues to grow by every operating measure, including EBITDA growth to NIS 506 million in January-September from NIS 327 million in the corresponding period of last year. The company has NIS 2.4 billion in cash, which together with its cash flow from operations, will enable it to develop its core business - income-producing properties - while maintaining its financial soundness."
Published by Globes [online], Israel business news - www.globes-online.com - on November 25, 2012
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